Newsline - September 3, 1996

LEBED, MASKHADOV, GULDIMANN SIGN AGREEMENT ENDING WAR IN CHECHNYA . . .
Security Council Secretary Aleksandr Lebed, Chechen Chief of Staff Aslan
Maskhadov, and OSCE mission head Tim Guldimann on 31 August signed a three-page
agreement on ending the war in Chechnya after eight hours of talks in
Khasavyurt, Dagestan, Western agencies reported. They also agreed on the
withdrawal of Russian forces from Chechnya and postponing any decision on
Chechnya's independence until 31 December 2001. The agreement failed to define
how Chechnya's future status would be decided, or who would govern the region
until then, AFP reported. A joint commission will be created by 1 October to
monitor the Russian troop withdrawal and coordinate measures to prevent
criminal and terrorist activities, according to AFP. -- Liz Fuller

. . . BUT WILL THE BLOODSHED REALLY STOP? The last remaining Russian
troops withdrew from Grozny on 31 August, AFP reported. On 2 September,
however, Russian Defense Minister Igor Rodionov told NTV that only the federal
forces that had been temporarily deployed in Chechnya will be withdrawn, while
some units of the North Caucasus Military District will be permanently
stationed in Chechnya. The commander of Russian Interior Ministry forces in
Chechnya, Lt.-Gen. Anatolii Shkirko, told Russian TV (RTR) on 2 September that
he has not seen the Lebed-Maskhadov peace agreement, and very much doubts that
it marks a definitive end to the war. Shkirko also claimed that not all Chechen
forces had withdrawn from Grozny, ITAR-TASS reported. A spokesman for
pro-Moscow Chechen head of state Doku Zavgaev, described the agreement as "a
large-scale provocation." -- Liz Fuller

KREMLIN REVEALS LITTLE ON YELTSIN'S HEALTH. President Boris Yeltsin has
just completed a full physical examination and finished a "course of preventive
procedures," ITAR-TASS reported on 2 September, citing a source in the Kremlin
who did not provide any further details. Yeltsin feels good, the source
claimed, and will continue resting without seeing any visitors. Meanwhile,
Russia has asked South African President Nelson Mandela to postpone his planned
18-22 September visit indefinitely without giving any reason. Mandela postponed
a visit in late 1995 when the fighting in Chechnya intensified. A 7 September
meeting with German Chancellor Helmut Kohl has not been canceled. -- Robert
Orttung

LEADERSHIP DIVIDED OVER LEBED'S PEACE. Security Council Secretary
Aleksandr Lebed met with Prime Minister Viktor Chernomyrdin on 2 September to
discuss the agreement on political principles that he signed with Chechen Chief
of Staff Aslan Maskhadov on 30 August, Russian media reported. Chernomyrdin
subsequently met with President Yeltsin at his vacation home in Zavidovo 100 km
outside Moscow. Lebed told NTV on 2 September that he was unable to reach
Yeltsin by telephone. As of 2 September, Yeltsin had not made public his
attitude toward the peace plan. After an initially cool response to the plan,
Chernomyrdin came out in support of it. Defense Minister Rodionov also came out
in support of the plan, NTV reported on 2 September. Yeltsin's chief of staff,
Anatolii Chubais, said he is concerned that the peace may have been bought at
too high a price, ORT reported. Chubais said that "the unity of Russia" cannot
be violated "under any circumstances, at any price." -- Peter Rutland in
Moscow

LEADING OPPOSITION MOVEMENT CRITICIZES LEBED ON CHECHNYA. Security
Council Secretary Lebed's negotiations with Chechen rebels "pose a direct
threat to the national security, territorial integrity, and sovereignty of the
Russian Federation," according to a statement released by the leadership of
Gennadii Zyuganov's Popular-Patriotic Union of Russia. The statement, published
in Sovetskaya Rossiya on 31 August, also attacked President Yeltsin's
previous policy on Chechnya. Instead, it proposed establishing peace, law, and
order in Chechnya "within the framework of the existing constitution," and then
granting Chechnya special status within the Russian Federation. It did not
specify how these tasks were to be accomplished; repeated military efforts to
disarm Chechen rebels have failed. Some political parties otherwise opposed to
the government, including Yabloko, have supported Lebed's efforts in Chechnya.
Surprisingly, in recent weeks no opposition parties have called for a special
session of parliament to discuss the Chechen crisis. -- Laura Belin

SARATOV GOVERNOR DEFEATS COMMUNIST CHALLENGER. Dmitrii Ayatskov won 80%
of the vote in the Saratov gubernatorial election on 1 September, convincingly
defeating the Communist Party candidate, businessman Anatolii Gordeev, who won
16%, NTV reported on 2 September. Ayatskov, a 45-year-old agronomist, was
appointed to his post by President Yeltsin in April 1996. He campaigned as a
non-partisan economic professional who, in the style of Moscow Mayor Yurii
Luzhkov, is able to manage his region effectively. Ayatskov supported Yeltsin
in the recent presidential election. Since his appointment, Ayatskov has fired
the majority of the region's district administrators, and directly intervened
in farm and factory management to ensure that the harvest was brought in and
wages were paid. Speaking on NTV, Ayatskov said he won 85% of the rural vote
and 77% of the urban vote. -- Peter Rutland in Moscow

NTV LAUNCHES FIRST SATELLITE CHANNEL. Prime Minister Chernomyrdin took
part in the opening of the first of five planned "NTV-plus" satellite channels
in Nizhnii Novgorod, ITAR-TASS reported on 1 September. The channel, which will
be available in most of European Russia, will show four Russian films every
night beginning at 6:30 p.m. By the end of the year, NTV will launch additional
satellite channels for foreign-made films, sports, news, and music,
Kommersant-Daily reported on 31 August. Individual subscribers will have
to pay $145 for the equipment to receive the special channels and then $10 per
month for the transmissions. The capital needed to launch these channels was
raised in June, when the gas monopoly Gazprom bought a 30% share in NTV (see
OMRI Daily Digest, 10 June 1996). -- Laura Belin

RUSSIAN REACTION TO U.S. PUNITIVE STRIKE AGAINST IRAQ. Moscow has voiced
"mounting concern" over the situation in Iraq following a U.S. cruise missile
attack on military targets in and around Baghdad as well as in southern Iraq,
AFP reported on 3 August. The agency, citing an unnamed Russian Foreign
Ministry official, said the attack could lead to "an uncontrollable situation,"
adding that "everything now depends on what the Americans do next." The day
before, the Russian Foreign Ministry said it supports a negotiated settlement
between Baghdad and the Kurds "based on ensuring the right of the Kurds to
autonomy within a united state." -- Lowell Bezanis

RUSSIAN ENVIRONMENTALIST DECLARED PRISONER OF CONSCIENCE. Amnesty
International has designated Aleksandr Nikitin, a retired navy officer being
held in prison for revealing Russian state secrets, a prisoner of conscience,
Russian and Western media reported on 30 August. Nikitin was arrested in
February while collecting information on the nuclear security of the Russian
Northern Fleet for a report by the Norwegian environmental group Bellona.
Nikitin, who has yet to be put on trial, says the information he was gathering
was openly available. He could face the death penalty if convicted of treason.
-- Anna Paretskaya

COMMERCIAL CENTERS TO CLOSE. The Foreign Economic Relations Ministry has
decided to close down 35 of its commercial centers in foreign capitals,
Izvestiya reported on 31 August. That would bring the number of existing
centers to 47, down from 130 five years ago. The move will save $20 million in
annual operating costs and free up $500 million worth of property, but 500
staff will be fired or relocated. Eventually, commercial centers will only be
kept in the "big seven" industrial powers, and in China, Iran, Iraq, Indonesia,
and Libya. Commercial functions will be taken over by the regular embassy. This
step is part of a general campaign to strengthen the coordinating role of the
Foreign Ministry. In other news, Foreign Economic Relations Minister Oleg
Davydov announced that his ministry has taken over the functions of the Russian
State Committee on Military-Technical Policy, ITAR-TASS reported on 30 August.
-- Peter Rutland in Moscow and Doug Clarke

PROBLEMS AT AVIASTAR. Several thousand employees of Aviastar, Russia's
largest commercial aircraft producer, blocked streets in Ulyanovsk on 2
September to protest wage arrears and the lack of work, NTV reported. Aviastar
has not paid its employees since April and the company put its workforce on
administrative leave at the end of August. The plant, which makes the Tupolev
204 and the Antonov 124 military transport plane, is in a financial crisis.
Demand for the An-124 has fallen sharply, and the plant lacks the necessary
capital to increase the production of Tu-204s. The oblast's governor has
appealed to Prime Minister Chernomyrdin for help, and workers are preparing to
send a petition to President Yeltsin. In mid-September, the government is due
to announce its decision on providing financial guarantees for a deal involving
the sale of 30 Tu-204s to an Egyptian firm, ITAR-TASS reported on 20 August. --
Penny Morvant

PENSION ARREARS RISE AGAIN. Despite President Yeltsin's pre-election
efforts to clear the backlog in pensions, pension arrears rose from 3 trillion
rubles on 1 June to 7.3 trillion rubles ($1.4 billion) on 1 August, according
to the head of the Pension Fund, Vasilii Barchuk, writing in Izvestiya
on 31 August. In most regions of Russia pensions are being paid with a 2-4 week
delay. The Pension Fund in turn is owed 8 trillion rubles from the federal
budget. The minimum pension for the second half of 1996 has been set at 220,000
rubles and the average pension will be 374,000 rubles ($70), compared with the
current average wage of 790,000 rubles. -- Peter Rutland in Moscow

INFLATION HITS ZERO. The State Statistical Committee has announced that
the rate of inflation in August was close to zero, the lowest level since the
beginning of economic reform, AFP reported on 3 September. In the last two
weeks of August, Russia recorded the first incidence of deflation as consumer
price inflation fell by 0.1% and 0.2%, respectively. This latest achievement
should make it possible for the government to keep the annual inflation rate
below 30%, down from 131% in 1995. At the same time, there is growing concern
that the government is focusing too intensely on monetary stabilization and
neglecting other areas of the economy. -- Natalia Gurushina

IMF REVISES 1996 BUDGET DEFICIT FIGURE. After a review of Russia's
economic performance last month, the IMF agreed to move up its target figure
for Russia's 1996 budget deficit from 4% to 5.25%, Reuters reported on 29
August. The step is a reaction to the need to make an adjustment to the
repayment of outstanding state short-term securities (T-bills) issued on the
eve of the presidential election, when yields were soaring to as high as 155%
annually. The IMF has delayed the disbursement of July's tranche of the $10.1
billion extended facility fund for one month, citing poor tax collection
practices. The tranche was released in August after the Russian government
adopted a package of 30 measures designed to boost revenue collection. Despite
the IMF's decision to loosen the budget deficit target, the fund's conditions
on Russia's revenue collection remain unchanged. -- Natalia Gurushina

IRREDENTIST CAMPAIGN AMONG AZERIS IN IRAN. Tens of thousands of ethnic
Azeris in Iran have signed a petition calling on their deputies in the Iranian
parliament to introduce legislation demanding the "return" to Iran of 17 cities
in the Caucasus, including Baku, the capital of Azerbaijan, AFP reported on 31
August, quoting the Iranian daily newspaper Abrar. The petition calls on
the leadership of Azerbaijan to "be courageous and recognize historical facts"
and accede to these demands. -- Liz Fuller

GEORGIAN DEFENSE MINISTER PROPOSES REPLACING OSSETIAN PEACEKEEPERS.
Meeting in Tbilisi with the deputy head of the OSCE mission in Georgia,
Georgian Defense Minister Vardiko Nadibaidze proposed disbanding the joint
Georgian-Russian-Osetian peacekeeping force deployed in Tskhinvali since 1992
and replacing it with a group of Russian and Georgian military observers,
ITAR-TASS reported on 31 August. -- Liz Fuller

MORE SACKINGS IN TURKMENISTAN. Turkmen President Saparmurad Niyazov has
sacked Supreme Court Chairman Amanmurad Kakabayev and Deputy Interior Minister
Amangeldy Geldykurbanov, Reuters reported on 29 August. The two were dismissed
for "failing in his responsibilities" and "serious shortcomings," repectively,
according to the agency. A 28 August Turkmen Radio report monitored by the BBC
reported that Geldykurbanov, who was also the head of Turkmenistan's Higher
Militia School, was demoted and expelled from all Interior Ministry bodies. He
was replaced at the school by Gurbanmukhammet Kasymov. No replacement for
Kakabayev has been announced. Niyazov deplored "an epidemic of corruption which
has touched all levels in the justice authorities," Reuters reported, citing
Neitralny Turkmenistan. -- Lowell Bezanis

UKRAINE INTRODUCES NATIONAL CURRENCY. Ukraine's national currency, the
hryvnya, was introduced on 2 September, international agencies reported. For a
transitional period, both karbovantsy and hryvnyas will be accepted as legal
tender, and prices will be frozen for the month. As of the hryvnya's
introduction, all wages, pensions, and foreign exchanges will now be made in
the new currency. -- Ustina Markus

GERMAN CHANCELLOR IN UKRAINE. German Chancellor Helmut Kohl arrived in
Ukraine on 2 September for an official visit, international agencies reported.
It was Kohl's third visit. Kohl met with President Leonid Kuchma, Prime
Minister Pavlo Lazarenko, and parliamentary speaker Oleksandr Moroz. The visit
will last until 4 September, and Kohl is to receive an honorary degree from
Kyiv's state university. An agreement is to be signed on consultations over
Ukraine's economic reforms, for which Germany will give 28.7 million DM this
year. An accord is also expected on cooperation between German and Ukrainian
TV, and on the status of Ukraine's 40,000 ethnic Germans. -- Ustina Markus

BELARUSIAN PRESIDENT UNVEILS NEW CONSTITUTION . . . President Alyaksandr
Lukashenka presented his draft constitution on 31 August, Russian TV and Radio
Rossii reported on 1 and 2 September. The draft extends the president's term of
office and gives him the right to annul decisions by local councils, set
election dates, call parliamentary sessions, and dissolve parliament. He can
also appoint judges, five members of the Constitutional Court and the chief
justice, Central Election Commission officials, and the head of the State
Control Service. The draft envisages a two-chamber parliament with a 110-member
house of representatives and a senate. All former presidents will be senators
for life. There was no mention of what should happen to the currently elected
199 deputies in the smaller new legislature. The president will have the right
to appoint a third of the senate. An All-Belarusian Congress of 5,000 members
is to convene on 19 October to discuss the draft. -- Ustina Markus

. . . LEADING TO MORE DEMONSTRATIONS. Lukashenka's draft constitution
was immediately denounced by parliamentary speaker Syamyon Sharetsky. He said
the document was meant to enhance the president's powers and was dangerous
given Lukashenka's "boundless appetite for power." On 2 September ITAR-TASS
reported 3,000 demonstrated in Minsk against Lukashenka's proposed new
constitution and referendum. The rally ended with protestors collecting
signatures for the removal of the president. -- Ustina Markus

U.S.-BALTIC ACTION PLAN PRESENTED TO AMBASSADORS. U.S. Assistant
Secretary of State Strobe Talbott presented the so-called Baltic Action Plan to
the ambassadors of Estonia, Latvia, and Lithuania in Washington on 29 August,
BNS reported the next day. The state department-developed plan has three parts.
The first foresees U.S. aid to the Baltic states for integration into Western
institutions, primarily in the area of security, including NATO. The second
stresses the importance of good relations with neighbors, especially Russia.
The third provides for the signing of individual cooperation charters between
the U.S. and the three states. Lithuanian Foreign Ministry Political Department
Director Vygaudas Usackas said the charters, which will encompass aspects of
economic, political, and security cooperation, should be signed early next
year. -- Saulius Girnius

ABORTION LAW EASED BY THE POLISH PARLIAMENT. The Sejm approved an
amendment to the abortion law on 30 August, allowing abortion up to the 12th
week of pregnancy in cases where the woman faces "major financial or personal
difficulties." Pope John Paul II was critical of the amendment, saying in
Polish on 1 September in Castelgandolfo: "A nation that kills its own children
is a nation without hope." Polish Catholic Primate Jozef Glemp was also
critical. Glemp said on 1 September that the law was a "general license to
kill, aimed at children." Polish public opinion is divided over the issue and
many Catholics are against the criminalization of abortion. President
Aleksander Kwasniewski said on 2 September: "Liberalizing the law on abortion
is a means of fighting hypocrisy which unfortunately emerged in Poland in
recent years." The Senate and Kwasniewski are expected to approve the
amendment. -- Jakub Karpinski

SOLIDARITY DEMONSTRATION IN WARSAW. Solidarity trade union organized on
1 September a demonstration in Warsaw marking the union's 16th anniversary. The
demonstration began with an open-air mass conducted by Polish Primate
Archbishop Jozef Glemp at St. Stanislas, the former church of Father Jerzy
Popieluszko, murdered by communist secret police in 1984 and buried in the
churchyard. "Solidarity still has commitments to fulfill," Glemp said. The
demonstrators shouted "Down with communism!" Police said about 35,000 took
part. Solidarity chief Marian Krzaklewski criticized the ruling coalition's
tendency to "ideologize all aspects of life," and to limit workers rights. --
Jakub Karpinski

CZECH DEFENSE MINISTRY PROPOSES REDUCTION OF ARMED FORCES. A Czech
Defense Ministry official on 30 August announced a plan for radical cuts in the
army, Reuters reported. Defense Minister Miroslav Vyborny drafted the plan,
aimed at maintaining the country's defense capability "with respect to economic
possibilities." The plan must be approved by the government and parliament;
proposals put forward by his two predecessors were rejected by the cabinet.
Vyborny's plan has already been criticized by the opposition Social Democrats
and Communists and praised by the Civic Democratic Alliance of the ruling
coalition, CTK reported. Meanwhile, Prime Minister Vaclav Klaus has reportedly
asked for more details. The proposal is said to include a reduction of the
army--which currently has 65,000 soldiers and 27,000 civilians--by 1,500
soldiers and 5,500 civilians. It also reportedly includes a cut in compulsory
military service from the current 12 months. -- Sharon Fisher

NEW PRIVATE TV LAUNCHED IN SLOVAKIA. TV Markiza, Slovakia's first
private terrestrial station, began broadcasting on 31 August, Slovak media
reported. Markiza broadcasts on Slovakia's third terrestrial channel, while the
country's other two terrestrial channels are controlled by the pro-government
Slovak TV. Currently covering about 60% of Slovakia's territory, Markiza plans
to broadcast 20 hours a day. Central European Media Enterprises, which holds a
majority share in the successful Czech station Nova, owns 49% of Markiza.
Although other private stations exist in Slovakia--broadcasting through
regional transmitters, cable, and satellite--Nova has dominated Slovakia's TV
market where it is available. Markiza's General Director Pavol Rusko said
Markiza's news will be "factual, without commentary," Narodna obroda
reported on 31 August. -- Sharon Fisher

SLOVAK ACTORS CALL FOR CULTURE MINISTER'S RESIGNATION. Actors and other
staff of the Slovak National Theater (SND) on 2 September called for Culture
Minister Ivan Hudec's resignation, Slovak media and Reuters reported. Returning
from summer vacation, SND staff met to discuss Hudec's controversial
replacement six weeks ago of the theater's stage director with actor Lubomir
Paulovic. The staff said Hudec violated the SND's autonomy by changing the
stage director without consulting the theater's general manager, Dusan Jamrich.
That same day, Paulovic announced his resignation from the SND. Also on 2
September, Slovakia's opposition parties met to discuss the country's foreign
relations and the upcoming parliamentary session. The opposition expressed
solidarity with the SND actors and said they will propose Hudec's dismissal.
The Democratic Union is also demanding the removal of Prosecutor-General Michal
Valo. -- Sharon Fisher

FIRST BREAKTHROUGH IN KOSOVO DEADLOCK IN SEVEN YEARS. Serbian President
Slobodan Milosevic and Kosovar shadow state President Ibrahim Rugova signed an
agreement on the return of ethnic-Albanian elementary and secondary school
children to school premises on 1 September, international media reported. The
agreement, negotiated under mediation of the Roman Catholic community
San'Egidio, is apolitical and both sides expressed the understanding that it
was of purely social and humanitarian character. It is, however, the first case
in which Milosevic accepted Rugova as a negotiating partner. Albanians in
Kosovo have been boycotting the Serbian schools and established an underground
school system in private homes since 1990. Albanian President Sali Berisha
praised the accord as an important step for human rights. Rugova said the
agreement lacked clarification on the status of university education. A
committee made up of three members from each side has been appointed to work
out terms for applying the accord. -- Fabian Schmidt

MUSLIM BOYCOTT OF BOSNIAN BALLOTING CALLED OFF. The governing Muslim
Party of Democratic Action (SDA) and the opposition Party for Bosnia and
Herzegovina (SBiH) have decided to call off their threat of an election
boycott, the BBC reported on 31 August. The OSCE apparently told them that the
current election rosters--which the Serbs in particular had packed to gain
strategic advantages in key towns--will not be used after the 14 September
vote. The SDA and SBiH were thereby reassured that the Serbs would not be able
to use the lists as a basis for rigged voting in future local elections or
referendums. -- Patrick Moore

BOSNIAN REFUGEE VOTING ABROAD YIELDS MIXED RESULTS. Voting in Serbia and
Montenegro continued to produce a poor turnout, with only 25% of those eligible
having cast their ballots by the end of the weekend, AFP reported on 2
September. Voting there began on 28 August and is slated to end on 3 September.
The initial call by the SDA and SBiH for a boycott apparently helped contribute
to a low turnout among Muslims in Germany, and as of 2 September only 10% of
the ballot papers from that country had been returned. Many could still be in
the mail, however, so the last word is not in. Things were considerably
different in Croatia, however, where some two-thirds of the potential
electorate turned out to vote on 31 August-1 September. Many others were
expected to travel home to cast their ballots in person. OSCE monitors
described the vote in Croatia as "without fraud or major irregularities." The
only problem was in Dubrovnik, where 1,700 voters were given Serbian ballots by
mistake and will later have to be issued Croat-Muslim ones. -- Patrick Moore

WILL HERCEG-BOSNA VANISH? U.S. Assistant Secretary of State John
Kornblum announced on 30 August the self-styled Bosnian Croat para-state of
Herceg-Bosna would legally cease to exist as of the next day, international
media reported. In turn, certain republican, mostly Muslim-controlled
ministries would be also dissolved into joint federal structures. Kornblum said
specific institutions of Herceg-Bosna would be changed over the coming
fortnight. But nothing really changed on 31 August. Ivan Bender, the
Herceg-Bosna senior official, said Bosnian Croats will abolish their para-state
only after getting guarantees from Muslims about simultaneous dissolution of
the republic authorities, Dnevni Avaz reported on 3 September. Bender
announced the para-state of Herceg-Bosna will be replaced by the Croatian
Community of Herceg-Bosna, a future political institution to guarantee
political rights of Bosnian Croats. -- Daria Sito Sucic

BOSNIAN AND CROATIAN SHORTS. Four explosions rocked Brcko early on 1
September, hitting three Muslim-owned houses and one Muslim company
specializing in housing repair materials, news agencies reported. This is not
the first such incident involving Muslim property in the strategic Serbian-held
town, the future of which will be decided by arbitration later this year. In
Doboj, peacekeepers on 31 August fired a warning shot at a Serbian ambulance
that was transporting unauthorized weapons. Meanwhile, at Ovcara near Vukovar
in Croatia, international forensic experts arrived on 30 August to begin work
on excavating a probable mass grave. The site presumably holds the remains of
at least 250 Croatian hospital patients killed by rump Yugoslav forces who took
the town in November 1991. Vukovar is synonymous with heroism and martyrdom in
Croatia, and work at the site will be followed closely by a broad public. --
Patrick Moore

BREAKTHROUGH ON THE SERBIAN STRIKE FRONT? The director of the Zastava
arms facility in Kragujevac, Col. Vukasin Filipovic, is resigning, Nasa
Borba reported on 2 September. Beta on 29 August reported him saying that
same day that he fully intended to resign, noting the action "was for the
[future] good of the plant, for the honest workers . . . and to preserve the
integrity of the office of plant director." Zastava workers are waging a strike
action, demanding unpaid wages, and have insisted on Filipovic's ouster (see
OMRI Daily Digest, 29 August 1996). Meanwhile, on 29 August Beta also
reported that Tomislav Banovic, chair of the Council of Independent Workers of
Serbia, said that with the conclusion of "an agreement with the federal
government," most of the Zastava workers' demands had been addressed and the
issue of unpaid wages "should be resolved through negotiations with plant
management." -- Stan Markotich

SLOVENIAN UPDATE. Slovenian President Milan Kucan opened a second round
of dialogues on 2 September with the country's political parties, aimed at
securing agreement on a national election date, Reuters reported. By 3
September, Kucan is expected to have met with representatives of 11 parties.
According to the Slovenian constitution, Kucan will have to announce the date
60 to 90 days in advance, and an election must be held between 27 October and 8
December 1996. In other news, Nasa Borba of 31 August-1 September
reported that Slovenian Premier Janez Drnovsek reiterated at a recent press
conference that Slovenia "wants normalized relations with [rump Yugoslavia]."
He added that Belgrade "continues to be overly preoccupied with the question of
continuity," suggesting that outstanding issue may be a stumbling block to
normalization. -- Stan Markotich

ROMANIAN COALITION BREAKS. The Party of Social Democracy in Romania on 2
September decided to oust its junior partner from the governmental coalition,
Radio Bucharest announced on 2 September. The decision was made after the Party
of Romanian National Unity (PUNR), at a meeting the previous day, reiterated
attacks on President Ion Iliescu over his intent to sign the Romanian-Hungarian
basic treaty. PUNR Chairman Gheorghe Funar earlier called the intention
"treason" and called for Iliescu's suspension from office. Transportation
Minister Aurel Novac immediately announced he was resigning as PUNR deputy
chairman and from the party itself in protest against what he called Funar's
"unjustified" attacks on Iliescu, which he said are aimed at building
"political capital" in Funar's race against the incumbent president. Novac will
stay in the government as an independent. Prime Minister Nicolae Vacaroiu asked
Iliescu to approve the dismissal of the other three PUNR ministers and said
their replacements will be made known on 3 September. -- Michael Shafir

DNIESTER REGION MARKS "INDEPENDENCE DAY." Moldova's breakaway Dniester
region on 2 September staged what Reuters called "pompous" celebrations to mark
the sixth anniversary of the region's "independence." Several thousand Dniester
troops marched in Tiraspol's main square. Leader Igor Smirnov read
congratulatory telegrams from the heads of several autonomous Russian regions
and from the leader of the Russian Liberal Democratic Party, Vladimir
Zhirinovsky. Infotag quoted Smirnov as saying there will be no voting for the
Moldovan presidential elections on Dniester territory. Those wishing to vote
will not be obstructed from doing so, but will have to travel to the territory
controlled by Chisinau, Smirnov said. -- Michael Shafir

BULGARIAN SOCIALISTS' PRESIDENTIAL CANDIDATE REJECTED. The Supreme Court
on 2 September rejected an appeal against the Central Electoral Commission's
(TsIK) refusal to register Foreign Minister Georgi Pirinski as presidential
candidate of the Bulgarian Socialist Party (BSP) on the grounds that he is not
a "Bulgarian citizen by birth" as required by the constitution, Bulgarian media
reported. The unanimous decision of a five-member magistrate under Chief
Justice Rumen Yankov is final. The BSP daily Duma accused the court of
acting on political orders by the opposition. Pirinski has not commented so
far. He will hold a press conference on 3 September. Trud named Culture
Minister Ivan Marazov--so far Pirinski's running mate--as the most likely new
BSP candidate. Other possible candidates include Parliament Chairman Blagovest
Sendov and Interior Minister Nikolay Dobrev. A BSP plenary meeting is expected
to decide on a new candidate later this week. -- Stefan Krause

GREEK FOREIGN MINISTER ENDS ALBANIAN VISIT. Greek Foreign Minister
Theodore Pangalos left Albania on 1 September after a two-day official visit,
AFP reported. The previous day he met with Albanian President Sali Berisha in
Vlora after inaugurating the Greek consulate in Gjirokastra. The two countries
agreed to set up a department of Albanian language at Athens University, and a
Greek high school in Tirana. Berisha and Pangalos also discussed ways to
legalize the immigration of Albanians to Greece as seasonal workers. Berisha
accepted an invitation from Greek President Kostis Stephanopoulos for a visit
in the near future. In other news, Bosnian Vice President Ejup Ganic arrived in
Tirana on 2 September. He met Berisha and Foreign Minister Tritan Shehu. --
Fabian Schmidt

COUNCIL OF EUROPE THREATENS TO SUSPEND ALBANIA. Lord Finsberg, leading a
delegation of the Council of Europe's parliamentary assembly, implied that the
Council was ready to suspend Albania unless the government and opposition
parties respected its call to start serious talks to sort out their
differences, Reuters reported on 30 August. Finsberg also said the Council
would send technical aid to Albania to help it hold free and fair local
elections on 20 October. Meanwhile, the Socialists pledged to participate fully
in the local ballot, but demanded the government guarantee free and fair
elections. They further demanded round-table talks to change the electoral law,
a new constitution and new parliamentary elections as soon as possible and the
annulment of the controversial "genocide law." -- Fabian Schmidt